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Article published May 28, 2009
Ohio House passes bill to control funds for inaugurals

COLUMBUS — It took scandal to focus its attention, but the Ohio House yesterday unanimously approved a bill reining in unregulated accounts fueled by individuals and corporations to pay for the inaugural activities of newly elected officials.

The bill, which goes to the Ohio Senate, stems from last year’s multiagency investigation into former Attorney General Marc Dann’s office and campaign activities. Mr. Dann resigned under pressure from Republicans and fellow Democrats alike in the wake of a sexual harassment scandal that ballooned into a much wider investigation.

“What is just as troubling to me, if not more troubling, is the fact that there could be more cases like that out there. Frankly, we’ll never know,’’ said Rep. Dan Dodd (D., Hebron), a sponsor.

Among other things, a report issued by Inspector General Tom Charles late last year accused Mr. Dann of using his campaign and transition accounts as slush funds for the personal use of himself, his family, and friends. Mr. Dann’s transition account, formed in 2006 after an upset election that surprised even him, spent $186,000 of $195,000 raised by the end of 2008.

The account allegedly was used to improperly purchase thousands of dollars worth of gifts from the dinnerware business controlled by Mr. Dann’s wife, Alyssa Lenhoff, with checks making their way into the Danns’ personal account. The report also alleged that transition funds improperly made their way to top Dann aides Anthony Gutierrez and Leo Jennings.

The inspector general’s office obtained the records through subpoena.

State law does not limit who can open such accounts, restrict who can give to them and in what amounts, or require the elected official to disclose the accounts’ activities. Some elected officials, most notably governors, have voluntarily released at least some of the information.

“It’s no surprise. There were irregularities found [through the investigation]. Unfortunately, there was no violation of law, because there was no law to violate,’’ said Rep. Mark Okey (D. Carrollton), the bill’s primary sponsor

Mr. Dann, however, still faces similar accusations related to similar uses of his campaign committee. Those allegations are expected to be heard next month by the Ohio Elections Commission.

The bill would:

• Limit the opening of such accounts to elected and appointed officials, with the exception of judges.

• Limit the committee’s existence to 120 days.

• Require public disclosure of the account’s activities, including who gave what and how the money was spent.

• Limit account donations to $10,000 for the office of governor and $2,500 for other officials.

• Require funds unspent at the time of the accounts’ expiration to be refunded to the contributors or given to a tax-exempt charity.


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